Anglo American agrees to sell Aussie coal mines for up to $3.78 billion to Peabody Energy

(Reuters) -Anglo American on Monday agreed to sell its Australian steelmaking coal mines to Peabody Energy for a cash consideration of up to $3.78 billion, in its first major disposal as part of a wider restructuring plan.

The mining giant is reshaping its business to mainly focus on copper and iron ore, after fending off a $49 billion takeover bid from larger rival BHP Group (NYSE:BHP) in May.

Peabody’s agreed cash consideration comprises an upfront payment of $2.05 billion at completion, deferred cash consideration of $725 million, the potential for up to $550 million in a price-linked earnout, and contingent cash consideration of $450 million linked to the reopening of the Grosvenor mine, Anglo American (JO:AGLJ) said in a statement.